The silver bullet for getting first-time homebuyers off the dime

homebuyers

 

homebuyersBy Daniel Goldstein | MarketWatch

Earlier this year, the Federal Housing Administration began reducing private mortgage insurance (PMI) premiums on its loans by an average of $900 a year. While the FHA loans typically come with low down payment requirements, they often have higher monthly payments as a result of the PMI that, unlike conventional loans, continues for the life of the loan, even when 20% equity is reached.

Now it appears the PMI reduction is having the desired effect.

Continued:

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